Manchester United Ltd
1. 0 INTRODUCTION Whether, we realized it or not, from the moment we are brought in this world and growing up in our everyday live we are living in and going through a life a full of organization with a certain mission and goal to achieve. We can take something that is truly close to our heart as an organization, our dearest family.
A family has a systematic structure as an organization; we have our father who sit at the top and make most of the important decision, our mother who is second in command.
And also their children who assist in accomplish the goal and purpose. Even thought this is just how I see a successful organization, but what is truly the meaning of organization thought the eye of a book. An organization defines as a systematic arrangement of people brought together to accomplish some specific purpose. A common characteristic of organization are have a distinct goal and purpose, comprise people working together to accomplish certain objectives, a systematic structure and an aim to serve the society.
Through this assignment we are going to look into an organization of a company and look through all the characteristics in making them an organization. For my organization I have chosen Manchester United Football Club Limited as my choice of organization. Almost all part of the world, where ever you step your feet in this world people will recognize the global brand of Manchester United so this include them as one of the biggest organization in the world. The reason I choose Manchester United because of my passion for this club and my enthusiasm in football as a leading market in sport or maybe even the world.
Other than that, Manchester United is also a perfect family oriented company, where their responsibilities is not just for the owner, director and staff but also to the supporters and fans of the club who gave almost everything to our beloved club. They have the obligate not just for the owner and director but also to the fans. MANCHESTER UNITED FOOTBALL CLUB LIMITED 2. 0 Introduction The club was formed as Newton Heath L&YR F. C. in 1878 as the works team of the Lancashire and Yorkshire Railway depot at Newton Heath, changing its name to Manchester United in 1902.
Prior to the 2005 takeover by the Glazer family the company had traded as Manchester United plc on the London Stock Exchange since 1991 and prior to flotation was registered as Manchester United Football Club Limited. Manchester United is one of the wealthiest and most widely supported football teams in the world. As of July 2011, the club is number one in Forbes magazine’s annual ranking of the world’s 50 most valuable sports teams, valued at $1. 86 billion. 2. 1 Nature of business Manchester United business revenues come in from mainly five sources: 1.
Match-day Income (money made from home games through ticket sales and other match-day activities) 2. Broadcasting Rights 3. Commercial Tie-ups (sponsorships, etc) 4. Merchandise 5. Catering Manchester United main nature of business is football. Ticketing for Football matches play a big part in generating income for Manchester united. And with this Old Trafford was build to accommodate football matches for Manchester united. With Old Trafford’s having capacity boosted to 75,800. The crowds of about 250,000 should generate match day revenue of ? 2. 8m on each occasion, more than ? . 1m of that figure from corporate sales. And with match-day ticket prices having doubled since over the past few years, United can make a bulk of their earning through ticket sales. As we all know football match is play on television all around the world and Manchester United is not excluded from this. In England the Football Association is the one responsible in collectively sells TV rights for the English football club. Because higher league placement results in a greater share of television rights, success on the field generates greater income for the club.
Since the inception of the Premier League, Manchester United has received the largest share of the revenue generated from the BSkyB broadcasting United have also significantly income in their Commercial revenue, through sponsorship deals with AON and NIKE. Also the whopping ? 10m/yr training kit deal with DHL given that the AON deal for the jersey itself is ? 20m/yr. Manchester United has also consistently enjoyed the highest commercial income of any English club. The club’s commercial arm generated ? 51 million. A key sponsorship relationship is with sportswear company Nike, who manage the club’s merchandising operation as part of a ? 03 million 13-year partnership established in 2002. Through Manchester United Finance and the club’s membership scheme, One United, those with an affinity for the club can purchase a range of branded goods and services. Additionally, Manchester United-branded media services – such as the club’s dedicated television channel, MUTV – have allowed the club to expand its fan base to those beyond the reach of its Old Trafford stadium. Other than that, the opening of red devils cafe at the stadium and around the world helps in exploring a new kind of business and also revenues.
Figure 1. 1 Manchester United: Revenue source and percentages 2. 2 Country of origin. Manchester United was formed in Newton Heath, United Kingdom in 1878 as Newton Heath LYR Football Club by the Carriage and Wagon department of the Lancashire and Yorkshire Railway depot. But the club changed its name to Manchester United in 1902 and moved to Old Trafford, Greater Manchester, United Kingdom in 1910. 2. 3 How long has it been in business? Manchester United was formed is 1878 and it is still operating of as now. So the company have been in business for 134 years. . 4 How global is the company. Manchester United globalization is a very special one indeed. Football main customers in business are the fans, Manchester United is not just broaden England but across the world in that fact. But how did this happen? From a small railway team into one of the leading global brand in the world. It all started in 1956, Manchester United became the first English club to take part in the European cup, a competition that are watch all over the world, thru this showing the growth in the club and how it is started in becoming ore global and In 1968 Manchester United became the first English club to win the European cup and opening the eyes of people. Since that, Manchester United have been a hugely dominating force in the worlds scene, in England, in Europe, and ultimately around the world. Another reason is the ownership of the club. Manchester United generally tended to be owned by hundreds of shareholders, primarily from the UK and Ireland. However in 2005, after J. P. McManus and John Magnier (two Irish men) sold their shares in the club to Malcolm Glazer he brought his stake in the club up to 75%, thus gaining control.
Glazer is an American business tycoon, this contributed in the spread of Manchester United to America. The globalization of Manchester United can certainly be seen through the companies that sponsor the club. Out of the 12 main sponsors of the club, not one is British, instead coming from America, Germany, Switzerland, Turkey, Russia, China, Korea, Malaysia and the Middle East. We can also see the globalization thru the squad Manchester united, out of 30 players, 17 are not from the UK, instead, coming from places such as Brazil, Portugal, Spain, Serbia and Bulgaria, amongst others.
We take Park Ji Sung as an example, a Korean player. Park is a mega star in his home country and thus has increased Manchester United’s fan base significantly in Korea, and Asia. But there were other events that contribute to the Manchester United Globalization such as the Munich Air Disaster in 1958, were the Manchester united plane crash after a match in Munich. People felt sorry for the club and public heart was touched thus creating more fan base. 2. 5 Market values Estimated value: $1. 83 billion (? 1. 19 million)
United have reaped the financial benefits of lucrative sponsorship deals with the likes of Nike and Aon, as well as a myriad of other income-generating endeavours such as their in-house television channel MUTV, which is currently beamed into over 190 million households worldwide to secure themselves an estimated global value of over $1. 8 billion (? 1. 1 billion). United are thought to have upwards of 333 million followers across the world, with a core contingent of 139 million supporters 2. 6 Top management of the company Owner: Glazer family via Red Football Shareholder Limited * Honorary president: Martin Edwards Manchester United Limited * Co-chairmen: Joel Glazer & Avram Glazer * Chief executive: David Gill * Chief operating officer: Michael Bolingbroke * Commercial director: Richard Arnold * Chief of Staff: Ed Woodward * Non-executive directors: Bryan Glazer, Kevin Glazer, Edward Glazer & Darcie Glazer Manchester United Football Club * Directors: David Gill, Michael Edelson, Sir Bobby Charlton, Maurice Watkins * Club secretary: John Alexander Global ambassador: Bryan Robson Coaching and medical staff * Manager: Sir Alex Ferguson * Assistant manager: Mike Phelan * First team coach: Rene Meulensteen * Goalkeeping coach: Eric Steele * Fitness coach: Tony Strudwick * Reserve team manager: Warren Joyce 2. 7 Shareholders. Malcolm Glazer is a US based businessman who bought 100% of Manchester United PLC and delisted United from the London Stock Exchange in 2005, through a holding company called Red Football. The Glazers purchased their first share of Manchester United on 2 March 2003, spending around ? million on a 2. 9% stake. On 26 September 2003, it was reported that he had increased his share to 3. 17%, taking his shareholding above the 3%. By 20 October, he had increased his shareholding to 8. 93%, and on 29 November it was reported that he owned around 15%. On 12 February 2004, Glazer increased his stake in the club to 16. 31% and the following day’s Financial Times reported that he had instructed Commerzbank to explore a takeover bid. Glazer increased his shareholding to over 19% the following June, although he was still not the largest shareholder.
His shareholding continued to increase, nearing 30% by October 2004. Upon reaching 30%, Glazer would have to launch a formal takeover bid. On 12 May 2005, Glazer reached an agreement with shareholders J. P. McManus and John Magnier to purchase their 28. 7% stake in the team, giving him a controlling stake with just under 57% of the team’s shares. He then managed to secure the stake of the third largest stakeholder, Scottish mining entrepreneur Harry Dobson, taking his share to 62% of the club. Just hours later, Glazer had bought a further 9. 8% stake taking his total ownership to 71. 8%.
On 16 May 2005, Glazer took his shareholding in Manchester United to 75%, allowing him to end the club’s public limited company (PLC) status and delist it from the London Stock Exchange, which he did on 22 June. On 14 June 2005, Glazer successfully increased his share in the club to 97. 3%, sufficient for full control. On 28 June, he increased his share to 98%, enough for a compulsory buyout of all remaining shareholders. The final valuation of the club was almost ? 800 million. 2. 8 Stakeholders Manchester United has a number of stakeholders. Stakeholders are an individual or group with a direct interest in an organisations performance.
The main stakeholders are the employees, owners, customers, suppliers, financer, fans and the local community. Manchester United employees apart from the football players also consist of employees that are responsible in sales, marketing, communication, human resources and finance. These departments exist in football clubs as well as in traditional companies. From the employees their main interests are to get pay rises and to get better training, the team players for example want better training so they can perform better and more effectively.
The fans main interests are, that Manchester United play good games, watch good players and win as much possible, and the owners get more profit. The main interests of the financers, example the sponsors wants to make sure there brand name gets advertised and their company logo is seen on the players shirts, they also want a team that wins the matches so that their company can be associated with a winning champion team. The suppliers are also stakeholders and their main interests are that Manchester united keep-purchasing products from them so they will be making lots of profits. . 9 Corporate Social Responsibilities. The Club’s mission is to be the best football club in the world, both on and off the pitch. It also believes that Manchester United should be a part of the community in the widest sense and that its success should not only be measured in the number of trophies it wins, but also by the impact it has on the community in which it exists. Manchester United as it has taken great strides towards achieving a number of off-field goals which have supported its ambition to be a socially integrated and responsible organisation.
Manchester United is committed to tackling environmental and social issues at regional, national and international level, using the Manchester United brand to leverage support and create awareness of the issues facing the planet. Here is some of Manchester United CSR program: 1. Hub of the Community: Hub schools are based in secondary schools within Partington, Wythenshawe and Salford. Each has up to 12 feeder primary schools and the structure of the programme allows for a long term relationship to be developed. The participants benefit from consistent provision with sessions being delivered both within and in addition to the curriculum. . Something to Chew On: An interactive project aimed at teaching 7-8 year olds about their own health and wellbeing. 3. Premier Men’s Health: Aims to use football to deliver key messages about health and encourage men over 18 to lead a healthier lifestyle. 4. KICKZ: The Foundation has run KICKZ since 2006. The project uses the power of football and the appeal of the Manchester United brand to target hard to reach and challenging communities. The project aims to create safer, stronger and more respectful communities by developing young people’s potential. 5. Girls Centre of Excellence:
The Manchester United Foundation Girl’s FA Centre of Excellence aims to provide opportunities for girls to play at the highest level, with the eventual view of developing them into international players. 6. Disability Centre of Excellence: The Foundation runs a Centre of Excellence for disabled players in partnership with the Manchester FA, with the specific aim of developing the more talented players from the Ability Counts leagues into the national squads. 2. 10 Employees Being successful off the pitch as well as on it requires Manchester United to have employees who are as committed to the success of the company.
Manchester United currently employing around 505 people including manager, backroom staff and players. 3. 0 Conclusion Manchester United can be proud of every achievement that came in their way. Started from only a railway football team that focus just to play some football into one of the biggest football team, company and brand in the world. The dedication and spirit of the players and community to see their team perform at the highest level is truly something to be wandered, although have nothing to gain from it just pride that came in their mind.
From the management of the company to the staff and players, they all made this happen. Without the performance of the football player in the pitch, the organization of the backroom staff and also the fans all of this cannot be achieve, Manchester United is truly a one united company. As conclusion, of course if given an opportunity to work with them it will be a big pleasure. Although not as a footballer but as Director or Head of Marketing Strategy ( Asia) will be an honour for myself.